1. Inquiry (VA11)
2. Quotation / Contracts / Scheduling Agreements (VA21)
3. Sales Order (VA01)
4. Delivery
a) Create Delivery (VL01N)
b) Picking (LT03)
c) Picking Confirmation (LT12)
d) Packing (Optional in VL02N)
e) Post Goods issue (VL02N)
5. Billing(=Invoice) (VF01)
6. Post Incoming Payment (F-28)
Sunday, April 6, 2008
MM Process Flow
PR (Purchase Requisition) > Release the PR > RFQ (Request for Qotation) > Quotation > Quotation Comparison > PO > Release the PO > GR (Goods Receiving) > Invoice Verification
The typical procurement cycle for a service or material consists of the following phases:
1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.
3. Vendor Selection and Comparison of Quotations
The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.
5. Purchase Order Follow-Up
The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
6. Goods Receiving and Inventory Management
Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods.7. Invoice VerificationThe system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.
The typical procurement cycle for a service or material consists of the following phases:
1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.
3. Vendor Selection and Comparison of Quotations
The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.
5. Purchase Order Follow-Up
The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
6. Goods Receiving and Inventory Management
Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods.7. Invoice VerificationThe system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.
Wednesday, April 2, 2008
How to configure the Sales Account Determination?
To define the General Leger posting :
IMG -> Sales and Distribution -> Account Assignment/Costing -> Revenue Account Determination -> Assign G/L Accounts
With this link, the material that used this account assignment group will be posted with the desired G/L accounts during Billing.
User will not be able to Release the billing document to Accounting if this is not setup.
If you happend to assign it via Cust.Grp/MaterialGrp/AcctKey, then you can let your user use this report to check the material assignment.
* Transaction code VKOA
IMG -> Sales and Distribution -> Account Assignment/Costing -> Revenue Account Determination -> Assign G/L Accounts
With this link, the material that used this account assignment group will be posted with the desired G/L accounts during Billing.
User will not be able to Release the billing document to Accounting if this is not setup.
If you happend to assign it via Cust.Grp/MaterialGrp/AcctKey, then you can let your user use this report to check the material assignment.
* Transaction code VKOA
Tuesday, April 1, 2008
Backorder Processing
Backorder processing is a functionality in SAP where you can change the committments and over-ride the blockage of stocks marked against sales documents/deliveries.
For examples; you receive an order from a very important customer for material "material A" but the entire quantity of "material A" is committed to another customer via earlier sales orders and this is where BACKORDER processing helps you to change the committment and shift stock due for B to A. This is the benefit of this funtionality.
T-codes for above process:
OMIH - Checking rule for updating backorders
OPJL - Define new checking rule
OPJJ - Define scope of check
V_RA - Backorder Processing
For examples; you receive an order from a very important customer for material "material A" but the entire quantity of "material A" is committed to another customer via earlier sales orders and this is where BACKORDER processing helps you to change the committment and shift stock due for B to A. This is the benefit of this funtionality.
T-codes for above process:
OMIH - Checking rule for updating backorders
OPJL - Define new checking rule
OPJJ - Define scope of check
V_RA - Backorder Processing
Friday, March 28, 2008
Define Account Assignment Group
Field found in Material Master Sales Organization 2.
To define the General Leger posting :-
IMG -> Sales and Distribution -> Account Assignment/Costing -> Revenue Account Determination -> Assign G/L Accounts
With this link, the material that used this account assignment group will be posted with the desired G/L accounts during Billing.
User will not be able to Release the billing document to Accounting if this is not setup.
If you happend to assign it via Cust.Grp/MaterialGrp/AcctKey, then you can let your user use this report to check the material assignment.
* Transaction code VKOA
To define the General Leger posting :-
IMG -> Sales and Distribution -> Account Assignment/Costing -> Revenue Account Determination -> Assign G/L Accounts
With this link, the material that used this account assignment group will be posted with the desired G/L accounts during Billing.
User will not be able to Release the billing document to Accounting if this is not setup.
If you happend to assign it via Cust.Grp/MaterialGrp/AcctKey, then you can let your user use this report to check the material assignment.
* Transaction code VKOA
Wednesday, March 12, 2008
SAP Steps for Opening previous period in MM
If you want to open previous period for reversal entry or additional entry
The following are steps for Opening previous period in MM :
1. Go to TCode SU01 (see OSS NOTES 487381)
2. Choose "change" tab with your loging Name
3. Choose "Parameter" tab and give Parameters MMPI_READ_NOTE with date format as YYYYMMDD
4. SAVE.
5. Go to T-code MMPI
6. open the old periods which you want to post into
Note : the period opening will be valid for only for the particular day only.
7. Complete the posting you want to reverse or add
8. Go to MMPV to close the periods
Note : If we enter the date or month in MMPV means we are opening that date or month by closing previous date or month (Never use MMPV without completing the transaction in previous month)
The following are steps for Opening previous period in MM :
1. Go to TCode SU01 (see OSS NOTES 487381)
2. Choose "change" tab with your loging Name
3. Choose "Parameter" tab and give Parameters MMPI_READ_NOTE with date format as YYYYMMDD
4. SAVE.
5. Go to T-code MMPI
6. open the old periods which you want to post into
Note : the period opening will be valid for only for the particular day only.
7. Complete the posting you want to reverse or add
8. Go to MMPV to close the periods
Note : If we enter the date or month in MMPV means we are opening that date or month by closing previous date or month (Never use MMPV without completing the transaction in previous month)
Partial/residual clearing
Partial/residual clearing
Example :
$100 :Invoice (Open Item)
$ 80 :Paid(Open Item)
$ 20 :Balance
In Partial Clearing you can see $100 and $80 are cleared line items and $20 as balance
(it leaves the original invoice amount and creates new
line item for incoming amount)
In Residual Clearing you can only $30 as balance as it creates new line item and you can’t see the other cleared line items.
(it clears original invoice with incoming amount and create new line item for remaining outstanding amount. )
Use of residual clearing as it affects on aging reports.
Example :
$100 :Invoice (Open Item)
$ 80 :Paid(Open Item)
$ 20 :Balance
In Partial Clearing you can see $100 and $80 are cleared line items and $20 as balance
(it leaves the original invoice amount and creates new
line item for incoming amount)
In Residual Clearing you can only $30 as balance as it creates new line item and you can’t see the other cleared line items.
(it clears original invoice with incoming amount and create new line item for remaining outstanding amount. )
Use of residual clearing as it affects on aging reports.
Monday, March 10, 2008
SD Integration with other modules
In SAP you will always get integration with other modules.
Looking at MM and SD interaction first, take the scenario of a third party order process.
The link between SD and MM :-
1. When you create sales order in SD, all the details of the items are copied from Material master of MM.
2. MRP and availibility check related data is also taken from MM although you control this data in SD also.
3. While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.
The link between SD and FI :-
1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the background. eg. In case of standard sales order, you create an outbound goods delivery to the customer.
Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account.
2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI
3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM
Sales Order – Integration Points Module
•Availability Check – MM
•Credit Check – FI
•Costing – CO/ MM
•Tax Determination – FI
•Transfer of Requirements – PP/ MM
Delivery & Goods Issue –Integration Points Module
•Availability Check – MM
•Credit Check – FI
•Reduces stock – MM
•Reduces Inventory $– FI/ CO
•Requirement Eliminated – PP/ MM
Billing – Integration Points Module
•Debit A/R – FI/ CO
•Credit Revenue – FI/ CO
•Updates G/ L - FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing – PS
Return Delivery & Credit Memo – Integration Points Module
•Increases Inventory – MM
•Updates G/ L - FI
•Credit Memo – FI
•Adjustment to A/R – FI
•Reduces Revenue – FI
Looking at MM and SD interaction first, take the scenario of a third party order process.
The link between SD and MM :-
1. When you create sales order in SD, all the details of the items are copied from Material master of MM.
2. MRP and availibility check related data is also taken from MM although you control this data in SD also.
3. While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.
The link between SD and FI :-
1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the background. eg. In case of standard sales order, you create an outbound goods delivery to the customer.
Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account.
2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI
3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM
Sales Order – Integration Points Module
•Availability Check – MM
•Credit Check – FI
•Costing – CO/ MM
•Tax Determination – FI
•Transfer of Requirements – PP/ MM
Delivery & Goods Issue –Integration Points Module
•Availability Check – MM
•Credit Check – FI
•Reduces stock – MM
•Reduces Inventory $– FI/ CO
•Requirement Eliminated – PP/ MM
Billing – Integration Points Module
•Debit A/R – FI/ CO
•Credit Revenue – FI/ CO
•Updates G/ L - FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing – PS
Return Delivery & Credit Memo – Integration Points Module
•Increases Inventory – MM
•Updates G/ L - FI
•Credit Memo – FI
•Adjustment to A/R – FI
•Reduces Revenue – FI
Friday, March 7, 2008
GR/IR tolerance for automatic clearing
All you have to do is define a tolerance limit (Group) and assign it to the user.
The group must be assigned to the particular GL Account through its master data. In this case, you need to have accounts where clearing differences (loss or gain) will go.
Check the following t-codes: OBA0, OB57 and OBXZ
IMG > FA > GLA > Business Trn > Opn Itm clrg > Clrg differences
1. Define tolerance for GL Account (This tolerance to be assigned to that GL account)
2. Assign Users to Tolerance Groups
3. Create Accounts for Clearing Differences
The group must be assigned to the particular GL Account through its master data. In this case, you need to have accounts where clearing differences (loss or gain) will go.
Check the following t-codes: OBA0, OB57 and OBXZ
IMG > FA > GLA > Business Trn > Opn Itm clrg > Clrg differences
1. Define tolerance for GL Account (This tolerance to be assigned to that GL account)
2. Assign Users to Tolerance Groups
3. Create Accounts for Clearing Differences
Thursday, March 6, 2008
Will Source List automatically appear in Material Master as default at plant level?
If you have maintained source list requirement in OME5 and have not maintained the source listfor the material. PO cannot be released. You are required to maintain source list for all materialsin the plant where the indicator is set if you maintain source list at plant level.
Else you can make use of info record to do so automatically.
Else you can make use of info record to do so automatically.
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